Fannie Mae Arm 7-6 Apartment Loans

Fannie Mae’s Multifamily Mortgage Business offers a 7-year variable-rate financing option with an
embedded cap, and an option to convert to fixed rate. This program provides low-cost financing, convertible to fixed-rate financing, and the maximum interest rate is set at rate lock. Eligible property types include conventional, affordable housing, seniors housing, student housing, and manufactured housing properties. This program does loans for acquisition or refinance.

The margin, which is the sum of the investor spread, the guaranty fee, and the servicing fee.

Accrual

Actual/360

Index

1-month LIBOR.

Rate Lock

30 day commitments.

Conversion to Fixed
Rate

Subject to the terms of the loan documents, the loan may be converted to a fixed-rate loan on any
rate change date beginning on the first day of the second loan year and ending on the first day of
the sixth loan year. - No prepayment premium is charged at the time that the Mortgage Loan converts. - Conversion requires minimal re-underwriting; lender determines that the current NOI can support
the new fixed rate.- No increase in the loan amount; loan may be eligible for a Supplemental loan. - No change in guaranty or servicing fees when the loan converts.

Prepayment

One-year lock-out followed by a 1% prepayment premium thereafter. No prepayment premium
during the last 3 months of the loan term.